in a plain vanilla interest rate swap, which party would be considered the long? the fixed rate payer?
I would think so… he is paying to receive the floating payments. so he is in essence by the floating unknown payments…
conventionally in the marketplace long or short in the context of a swap or a swaption is always with respect to the fixed leg, i.e. fixed payer is long and fixed receiver is short. But I would expect this will be given unequivocally in the exam tomorrow